Ontario Proposes Full HST Rebate for First-Time Home Buyers
New rebate could save families up to $130,000 on new homes valued up to $1 million
Toronto, Ontario – The Ontario government is proposing a full rebate of the provincial portion of the HST for first-time home buyers on new homes valued up to $1 million, in a move aimed at helping more families achieve the dream of homeownership.
The plan, part of the upcoming 2025 Fall Economic Statement, would return 8 per cent of the HST to first-time buyers of newly built or substantially renovated homes. Combined with the federal government’s proposed 5 per cent rebate, total savings could reach up to $130,000 on a qualifying new home — offering a major boost to affordability while stimulating new home construction across the province.
“In the face of tariffs and global economic uncertainty, it’s never been more important to make life more affordable for the hardworking people of Ontario,” said Peter Bethlenfalvy, Minister of Finance. “Through our proposed HST rebate, we’re saving families money on one of the biggest financial transactions of their lives and putting more money back in their pockets.”
Partnering with Ottawa to Deliver Relief
Ontario’s new rebate would mirror the federal First-Time Home Buyers’ GST/HST Rebate, which removes the federal portion of the HST on qualifying new homes valued up to $1 million. The rebate is contingent on the passage of federal legislation, and Ontario has pledged to align its implementation with federal timelines and eligibility rules.
If passed, the provincial rebate would:
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Apply to new or substantially renovated homes purchased on or after May 27, 2025, and before 2031.
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Require that construction begin before 2031 and be substantially completed by 2036.
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Follow the same primary residence requirement as the federal rebate.
The province emphasized that the measure complements its broader housing strategy — including the $4 billion Municipal Housing Infrastructure Program and the $1.2 billion Building Faster Fund — to support new home construction and reduce development costs.
Targeted Relief for First-Time Buyers
Under the proposal, the rebate would fully refund the 8 per cent provincial HST on homes up to $1 million and phase out gradually for homes valued between $1 million and $1.5 million, bottoming out at $24,000 for homes in the upper price range.
In the face of global economic uncertainty, it’s never been more important to make life more affordable.
That’s why our government is rebating the HST for first-time home buyers on new homes valued up to $1 million — saving families up to $80,000! #OnFES2025 pic.twitter.com/p4iF2s4lPS
— Peter Bethlenfalvy (@PBethlenfalvy) October 28, 2025
When combined with Ontario’s existing HST New Housing Rebate, eligible first-time buyers could see total relief of up to 13 per cent, providing meaningful savings and stimulating demand in the housing market.
Rob Flack, Minister of Municipal Affairs and Housing, said the measure will benefit both home buyers and workers in the construction industry.
“This is good news for first-time home buyers and for tradespeople who can keep doing what they love — building their communities,” said Flack.
Industry and Municipal Leaders Applaud the Move
The announcement received widespread support from Ontario’s housing, construction, and municipal sectors.
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Richard Lyall, President of the Residential Construction Council of Ontario (RESCON), called the rebate “good news for the thousands of young people and families struggling to realize the dream of new home ownership.”
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Dave Wilkes, President and CEO of the Building Industry and Land Development Association (BILD), said the policy “comes at the right time to boost confidence in a challenging housing market.”
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Robin Jones, President of the Association of Municipalities of Ontario (AMO), said the rebate could “help increase new home construction — an important priority for municipalities and the province.”
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Scott Andison, CEO of the Ontario Home Builders’ Association (OHBA), praised the government for recognizing that “taxation is a barrier to homeownership and that targeted tax relief is key to improving affordability.”
Strengthening Ontario’s Housing Supply
The proposed rebate builds on Premier Doug Ford’s “Protect Ontario by Building Faster and Smarter Act, 2025”, which aims to accelerate housing development through reduced red tape and faster approvals.
Ontario’s approach also complements the federal government’s proposed reforms and aligns with the province’s goal of building 1.5 million new homes by 2031.
Full details on the rebate and other affordability measures will be released in the 2025 Ontario Economic Outlook and Fiscal Review on November 6, 2025.
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